– An ambitious Sh500 billion Agricity project by an American investor and a Sh3.3 billion road construction plan are among dozens of failed projects that are raising eyebrows.
– The MCA’s report revealed that the Virginia-based company Oasis Group International, chaired by Mr Amira Ballarin, which was awarded the Sh3.3 billion tender, had an insignificant annual turnover.
– But yesterday, the county’s Executive committee member for Transport Eliud Otieno, a top official of the governor’s think-tank, defended the county government against claims of rampant corruption and misuse of funds.
– It is however know like in the energy sector that many investors are asked bribes as some public servants only think on them selves and not the good for the whole community. See more details about that in the main text.
An MP has raised questions over the increasing number of failed multi-billion projects in Homa Bay County.
Kasipul MP Oyugi Magwanga has urged Governor Cyprian Awiti to be cautious about prospective investors seeking to set up projects in the county.
An ambitious Sh500 billion Agricity project by an American investor and a Sh3.3 billion road construction plan are among dozens of failed projects that are raising eyebrows.
The Agricity project, which would have seen the construction of roads and low-cost housing units collapsed after the investor went underground.
It’s however known by this news site that in 2013 another farming project from a Scandinavian country that wanted to invest 50 Million USD and employee 600-800 people in Kenya (not necessary in Homa Bay) and pulled out after being asked for 1 Million USD each for 5 Public servant(Mp, Ministers) to give the final permit. So they pulled out, and the Community and Kenya lost out.
The MP complained about the emerging of millionaires in the county and called on the Ethics and Anti-Corruption Commission to scrutinize officials who fortunes have suddenly changed. Documents seen by the Nation revealed how another American investor disappeared after the county government paid Sh110 million as deposit for the construction of some 204 kilometers road.
Last month, the county assembly adopted a Transport committee report that questioned the motive behind the awarding of the multi-billion deal to a company that lacked the financial capacity.
The MCA’s report revealed that the Virginia-based company Oasis Group International, chaired by Mr Amira Ballarin, which was awarded the Sh3.3 billion tender, had an insignificant annual turnover.
“The annual returns for the company is Sh120 million, hence the firm has no capacity to carry out the project,” said the report. “The tender documents submitted had Oasis Group International on the cover but entailed the details of Berenyi Incorporated, which is a different company,” said the committee chaired by Mr Peter Kaula. The MCAs also questioned the use of the office of the governor’s letterhead in a tender document presented by the American firm. The project, which had started on Kadongo-Gendia road stopped shortly after, raising concerns from residents. But yesterday, the county’s Executive committee member for Transport Eliud Otieno, a top official of the governor’s think-tank, defended the county government against claims of rampant corruption and misuse of funds.
He said that the county would recover the Sh110 million paid to the Americans, arguing that the project was insured.
“Nothing has been lost, we will recover the money because we insured the project. On Agricity project, by the time the investor pulled out, we had not paid a cent. I can confirm this as a member of the cabinet who was involved,” said Mr Otieno.
He denied that the county had paid over Sh200 million and facilitated the investor’s trips to Kenya. Mr Otieno claimed the American pulled out after detractors scared him that the project had lost public support.
We have knowledge to several projects were investors have pulled out because the have lost anywhere from 10 million Shilling to more than 500 million shilling without getting anything work, be allowed to invest and similar, and we will bring more of these stories here on East Africa News